Ladies and gentlemen. Thanks for standing by and welcome to Cia Hering Earnings Conference Call to discuss the results of the Fourth Quarter and the year 2016. All participants will be connected in listen-only mode through Company's remark. After the presentation, there will be a question-and-answer section when further instructions will be provided. (Operator Instructions).

Before we proceed, let me remind that forward-looking statements made during the call concern the Company's business perspective, as well as projection, financial and operating goals are based on the Company's expectations. Those expectations are highly dependent on market conditions and also on the overall economic performance of the country and also in international market. Therefore, they are subject to changes.

Here with us in Sao Paulo, we have Mr. Fabio Hering, the Company's CEO, and Mr. Frederico de Aguiar Oldani, the Company's CFO and IRO. They will make an initial presentation and then will be available for questions.

I would like now to turn the conference over to Mr. Fabio Hering. Please Mr. Hering, you may proceed.

Good morning, everyone. Thank you for participating in our conference call to discuss fourth quarter results and of course will also be adjusting the year 2016, so before I start the presentation of the results specifically concerning the fourth quarter, I would like to briefly make a few comment about the year 2016. Especially the remark concerns what we have accomplished throughout that period. Even though our results were below our expectation and below what we had contemplate in the beginning of the year and the fourth quarter was even worse in that respect, we have on the other hand certain good news that allows to celebrate if you will, the year 2016 as a year where we have advanced considerably. Maybe not at a pace we would like but in terms of products and stores, we have some important signs of progress which were achieved along the year. We have worked to improve our store supply both on store and franchises, the Hering network and Kids, PUC network and throughout the year, we managed to increase the acceptance of our products through our network [under] part of our franchisee. They all accepted really well our suggestions of replenishing the stores. And if you remember, there was a balanced performance because of that even though there was a break in sale that we also saw.

Now inventories grow throughout the year because of those action. So that goes to show how much we have advanced in our ability to better supply our channels and our franchises and our own stores. Combined that we had also started a wide refurbishing program for all stores, which also affected our performance in the fourth quarter, because that's when we had the highest number of stores, which were shift down for some period for the refurbishment works, but that also set us at a very comfortable position for the year starting now. And all of them are now fall in the same and updated architecture design and format and with all of that we think that we have not reached the objective we have [set] and also has been recognized the mistakes we made and those mistakes are concerned the phase of growth, the speed of implementation of the changes to acquire -- achieve better results, but still there is no doubt that in 2016 we will follow the right path.

We have maintained our focus on product and stores as a new leveraging tools for us to achieve good results for our Hering network and other channels where we are present. So that's part of a strategy, which proves to be correct. It's also worth mentioning the performance at the Hering Kids network, (inaudible) 217 sector showed better results than other channel, even within the PUC network, we had a very good program to revamp the brand and finding the right niches and the Hering Kid network which were not only the number of stores, but also had surely very good performance in terms of same-store sales and sales per square meter. And like the DZARM brand also underwent important readjustment in processes and now we see the results are both (inaudible). So very briefly, putting all back together and illustrate the result scenario, which does not make us happy of course, and of course that scenario is also affected by the macroeconomic scenario, but you can see issues are well of that inside the Company with our quite focus, we know exactly, clearly that we need to speed up the changes we have mapped out so that we can better manage the Company. It's also quite clear after the year 2016 that the path we are now threading is the right one at Cia Hering. There is no doubt in my mind as to where we want to go and how we will get there. We just need to add some more effort in terms of [getting] there. So Hering made the brief summary of how the management see the year 2016 and the end of the year. I would like now to Frederico to present the figures for the fourth quarter and then we will all be available for questions or comments that you may have.

Good morning, everyone. I'll start on slide number 3. And talking about the sales performance, Company's sales performance in the fourth quarter showed sales in the internal market of [BRL409 million], which is a drop of 15.2% when compared to the previous year. The fourth quarter was the most difficult quarter in the year, especially for the Hering's brand and specifically in the franchise channel which had a unique performance when compared to the other channel, part of which has to do with their macroeconomic scenario but also -- but it has to do with the way the Company managed the delivery of the summery collection through that channel when we compare that to the previous year. The Company anticipated the delivery schedule to get the network ready for the fourth quarter and that of course had an effect on the figures in the fourth quarter. As for Hering Kids we had a better performance, a very positive performance, a [two] digit growth. And along the same line of performance [inside the past] quarters and also in line with the years result. The other brands PUC and DZARM also saw drops, at PUC for example we saw a drop of 11.5% in the fourth quarter, for DZARM 10.4%, for PUC, we had similar results to the ones we saw in the back of the year. As for as EBITDA despite the drop we see that drop is slowing down, this shows that some of the improvements you have implemented are already materializing, already being recognized by the market, by the different channels but still the brand is suffering the effect of its reposition in work that abated. The major focus in this new position in developing new store and also trying to find a new profile with a multi-brand concept. So in left, some multi-brands channels that were not proposition with the brand, throughout the year, so that also showed in the numbers.

So despite the yearly results, we did [give backup] brand, its following the right path and we already see signs of integration going forward. When we look at the performance by channel, speaking of the whole year, both in multi-brand and in franchise channels has certainly performances say drop at around 11%. As for owned stores, we saw a growth of 2.9% that growth was driven mainly by the addition of new owned stores when we compare that with previous years. Since we see no growth in the same-store performance figure, numbers that represent the franchising channels. The main positive highlight is the webstore with a growth of 20.3%, especially the second half of the year, where we managed to better explore the facility that you created in Hering e-commerce platform. We launch it for outlets, and the tools which were implemented which provided more ease of use for the website. There are series of improvement that they have implemented within the channel, which have translated into higher traffic of consumers and a higher level of -- or higher rate of conversion, so if you have a promise in webstore channel, and we are trying to explore as many opportunities as we can go forward.

Moving to the next slide, slide number 4, [figures] about the performance of the Hering store network.

For 2016, we had sales of approximately BRL1.4 million, which it means a decrease of 8.9% when compared to the same period in 2015. This performance is explained mainly by the performance of our stores which was minus [18] for year. The store was basically stable throughout the year and we cannot compare 2016 to 2015. We closed nine stores out of [bank reserve] approximately 130 stores. Therefore, this is particularly a very stable network, but the highlight of the Hering Store for 2016 was the replenishing trend, because or as we had anticipated, we were going to focus a lot on innovating a significant part of our network and therefore, we created a plan, where we plan to expand 18 stores and we had 100 stores complying with the plan that was the largest refurbishment plan ever implemented by the Company in a year where we had a lot of doubt, and we were not sure whether we will be able to have a strong compliance by the network, because of the macroeconomic scenario and because of the sales results which were not evolving really well and therefore, this trend demonstrated that was a very good commitments from the stores and also it only shows how much they believe in their potential of the business, and even in a very difficult year with a lot of recession, we were able to progress a lot in terms of the renovation as a network and a lot of other things that were implemented in terms of improvements of products and supply. We understand that all of these factors are very important so that we can sensibly implement the P&L strategy, which means the improvement of the products and the store experience and therefore refurbishing plays a very important role in this strategy to make this feasible of the Company made for part of this refurbishing approximately where part of this refurbishing was subsided by the Company and in fact this was an expense of BRL8.4 million. In addition to the spending of the reminder amount to very attractive conditions and therefore, we were very happy that we were able to reach the goal, we have proposed for the refurbishing plan. We will invest that refurbishing not only on how to improve the store performance but they also have a very positive impact in terms of brand, purchase experience and that help strengthen during some aspect of brand which we believe to be very important to be in line with all of our planned store in 2017.

Now moving on to the next slide, I would like to talk a little bit about the gross profit and aggregate. The gross profit for the fourth quarter reached BRL175 million with a gross margin of 40.5% which means an improvement when compared to the fourth quarter in 2016. And what we would like to highlight here that is very positive is that even with the scenario of decrease in sales which generates a lot of difficulties in comparing the cost results of [plant] between then letter -- words which generates a higher markdown compensated the negative effect, the negative impact in terms of operational leveraging or deleveraging and helps us recover credit [worth gross] losses in the year-end. We have choose stability. We maintain the same level of gross margin which is held in the chain and what I would like to highlight here is that after several years of decrease in our gross margins in 2016, we were able to stabilize this stability. If you take into account that we had a decrease in sales that was quite significant, it always showed the level of effort that was made in managing stocks and leftovers, which now has compensate the operational deleveraging we had resulting from the decrease in sales and the fact that our leftovers are at better levels than in previous years give us more optimistic scenario in terms of our ability to recover our margins and perhaps that our sales will be able to [seize] again.

And I want to talk a little bit about EBITDA. In the fourth quarter , it reached BRL207 million and in the fourth quarter it represent an improvement and it was impacted by a decrease in sales and consequent operational deleveraging.

In the fourth quarter, more specifically, there were some non-recurring effects. Over the years, these effects are smaller. However, when we analyze the year, basically, our EBITDA performance is explained by the decrease in sales, we managed our expenses really well. We had very little increase in expenses throughout the year, but whenever you have [a decrease] in sales up 8%, it is very difficult for you to be able to guarantee big outcomes and therefore 21% of decrease in the EBITDA is not such a poor scenario given the level of decrease we had in sales and given the difficulty in decreasing expenses in a scenario where inflations, especially in terms of salary has become a major challenge for you to have good expense management and even so our expenses increased much less than, when we compare it to the inflation levels than in terms of margin and expenses, we believe that, we somehow were able to counterbalance the negative impact of sale decreases and the final results of the Company.

And now, moving to the next slide, I want to talk a little bit about profits and investments. In the fourth quarter, our net income was BRL50.9 million, which was a decrease of about 29.1% when compared to the previous year and it is worth mentioning here that there are non-recurring impact that are very important in [2015] and they [append] to comparison of the fourth quarter and the comparison of the year as a whole, both in terms of non-recurring effect which changed that were achieved last year and which was explained in the release of the previous years, but in our comparison basis, it affects the comparison of the results for [2015]. It is also worth mentioning that our profit also had a positive impact in 2015 caused by the low incidence of income tax in 2016 and also the benefit, the tax benefits we obtained, and therefore this led to a very good income tax values and tax rate for 2016 and then we concluded 2016 with BRL199.4 million of net income.

And now, I'd like to talk a little about our investment plan, in here, we invested BRL51.3 million, which is lower than what we had in 2015, after a cycle of strong investment in 2015, in 2014, basically because of the SAP and also because of the new plant in Sao Luis de Montes Belos also important investment in automation is going on. We now go into a cycle of lower investments and we continue investments in line with our strategy to refurbish our stores. This was the largest investment made by the Company within this BRL51 million, so the purchase of stores represented almost half of this amount and we believe that, looking out into the future, we will have lower investments than we have for 2014 and 2015 and as we mentioned in the release, we have an expectation of a key factor of about BRL67 million.

And now, moving on to the next slide, I'd like to take a little bit about the cash flow. 2016 was a year of strong cash generation for the Company. We almost doubled our cash when compared to 2015, cash generation reached BRL209.4 million. There is a series of positive effect especially in terms of our working capital and lower CapEx which have compensated basically the EBITDA for 2015. This year was a very strong year in terms of cash generation and this cash generation was basically distributed into [JCD] greater than what was already done in 2016 what was proposed in terms of additional dividend reached about BRL200 million, which is basically everything that was generated throughout the year and so it demonstrates that despite all of the difficulties the Company has faced with its economic environment and the difficulties we see in the market, the Company has a very solid and profitable business with a strong cash generation, which enables us to safely implement our strategy and to have resources to do what we [deemed] too important to do so that our business can grow again.

And moving on to the next slide in terms of our dividends, basically talked about this in the [presentation] slide when I talked about cash flow, but for the year including [2015] we reached BRL199 million, generating a same amount of almost [100%] of profits returning to the shareholders.

And finally, I'd like to talk about perspective, and our outlook for 2017. Our expectations are very positive in terms of how the economy should behave throughout the year. We believe, that this is not going to be a recession year. We believe that our GDP is going to increase again even though very modestly, but in the short term, we still foresee some difficulties, we believe that economy will be better throughout the year, but consumption has not effectively materialized end of stores. So the [the major] end of store has not had any major differences, when compared to the end of last year. Even though we believe, we strongly believe actually that the scenario is likely to improve in the future.

We remain focused on our strategy based on the offer of products and the store experience or with a focus on [CNS] and the improvement in products, which we have been tracking for a while now become more evident as we move on, we already have that are showing that the channel both franchise and multi-brand have a [versage] evolution, and this has been translated into larger future orders. We have project in for the fall and winter and this has materialized into orders but of course very important part is for this improvement to effectively reach the stores and to be perceived by consumers, but we already have some signs indicating that the channel believe that the conditions have improved, which have been translated in higher future orders for future collection. And the stores, we'll continue their refurbishing plan without of the same benefits that were offered last year. Of course, this will take place at a slower pace than it did last year, but yes, we'll continue with our refurbishing plan trying to renovate the whole network, more especially the Hering Store network.

In terms of improvement, we have had a very positive improvement in our strategy -- has provided clear results, both in terms of continued flow into the stores and also in terms of improvements in store convergence. We will continue investing in the channels and we believe that this is going to be the channel that will grow the most of all of the Company channel. We believe that we will at some point in time had e-commerce representing 25% of the Company's sales we concluded end of [2015] with e-commerce representing a little bit more than 2% of our sales and therefore, we really believe that it's going to leverage the Company's growth.

And lastly, for the multi-brand channel, we believe that for the year 2017, the improvement of the economic scenario will benefit the channel. We do not believe, we have the same level of loss of client that we had experienced for the past two years. We expected some [favoring] the number of clients in the channel and that we have a clear focus going forward in implementing our new strategy which is based on a new client segmentation strategy where it will work differently for each different segments, and the [works] will have strategies which will be fine-tuned with different segment trying to generate more value to those clients. And yes the idea is to increase our penetration in those channels, or in that particular channel. So those are over expectations for the year. We believe that 2017 will be a turning point for the Company, of course we depend heavily on the economy -- improving growing economy, but it also depend as Fabio said, it also depends on our ability to speed up implementation of our strategies. So that we can effectively put our strategy into practice offering better experience, better products to the final end consumer. That's basically what we have to present in terms of numbers and figures for 2016.

As a reminder, this conference is for market investors and analysts only. Questions from journalists should be forwarded to Mr. Lenon Hymalaia at Press Relations on the phone (11) 3181-5005 or via e-mail: lenon.hymalaia@louresconsultoria.com.br.

(interpreted) Good morning, Fabio. Thank you for taking my question. I have two questions actually. The first one has to do with the gross margin. We saw, we talked about it on Investor Day already, you are trying to reach a better adjustment. I'd like to know that increase on average price that we saw and the increase in gross margins already a reflection of that, what you saw in the Christmas period for example, and the second question has to do with the outlook, you said that you already have higher orders coming in so that result -- that's an [investment in multi-channel] in fourth quarter, what we can expect going forward on that front?

(interpreted) Hi, Olivia, this is Fred speaking. As for gross margins, the main positive driver were the better leftover levels that we have, part of that, it is of course reflected on the average price that we see -- is that a question? Yes, that's a yes, but that's not the main factors driving the average price and driving our gross margins. The answer would be left or leftovers and this balance is usually forwarded through the multi-brand channel, not necessarily to the franchisee, that's the main fact. Therefore better or higher orders and this fall winter cycle coming forward, we'll see a growth in orders. Of course, the growth in orders does not necessarily mean a growth in sales, but it is a sign that the different channels have faith in the potential of the new collections. Those are indications of good prospective, if you will for demands going forward, but I will not be able to state probably right now if this -- whether this will translate into growth as early as the first quarter, but we do see an increase in orders and that increase provided and its translate in a more better sellout performance then we do believe, you can see the Company resuming growth in the upcoming quarters.

(interpreted) As for income tax, we have the following, for the current income level, we say practically no taxes. We have about BRL120 million in terms of investment subsidies, which is not taxable in terms of income tax and social contribution on top on BRL90 million in terms of [JCT] which we can pay out for the year, if we add those two factors, our move from discount of around BRL210 million from the taxable margin, so if I have a net income of BRL210 million, I will say no income tax, from that amount on that we will have that tax rate of around 34% that should be the dynamics under which we can analyze our income tax and social contribution [one in the] balance sheet. Thank you.

(interpreted) Good morning, everyone. I have two questions. First, picking up or a little bit of the income tax issue, we see that in the last quarter the contribution for the fund was slightly higher than we expected. Can you give a number on that line, on a quarterly basis what do you expect going forward for this year? And the second question has to do with point of sale, we saw an increase in the fourth quarter, can you give us some more color on that, are you talking multi-brand or franchisee? What kind of trend can we expect going forward? And if you can give us a number to have a better model that will be great. Thank you.

(interpreted) The Protege Funds was slightly high in the fourth quarter, higher than usual, you're right. The amount for the fourth quarter refers to a discussion -- conversations we were having with the government of Goias, we are trying decide the starting date for that tax to become effective and then yearend, we recognized about BRL6 million extra, this is the conversation that we had at our (inaudible) concerning the year 2015. If you look at this number in a normalized way, the Protege Fund should be around 15%, so something close to [BRL18 million to BRL16 million] a year. This should [rate] according to revenues on a quarter-on-quarter basis. So what I can understand is this, I should not pay in the first quarter or you have to pay in a retroactive manner. Yes, the matter was not if the Company was overdue, it was more a technical discussion of when to start paying, then we reached an agreement but the math is the same, right?. The account should be around [15] there is a huge effort [B2B], we had an increase of [BRL14 million] in a year. Actually what increased was the delay. The impact of the [PGD] was not that great. Our PGD is quite low. We have a loss which is around BRL77 million a year, that effectively what will [reduce] on top of revenues of around BRL1.7 billion. So that's a very, very small amount in comparison talking about the effective loss, of course, delay moved from BRL39 million to BRL33 million that delay happened in two channels, franchisee and multi-brand. Part of the increase in [PV] can be explained by the higher delay we had, it was a year that still BRL33 million seems to be very low amount, given how difficult the market scenario represented itself in the year 2016. So that increase in delay should continue to generate losses which will be exactly above what we are used to, but we do not expect to see any figures higher than BRL10 million to BRL12 million in losses throughout the years. And that's for the multi-brand channel that's quite segmented. So that it's spread out through hundreds of clients, there is no one-off concentration point and there is no higher concern in terms of the quote, unquote health of the channel. We do not expect a higher level of default taking place. As for the franchise channel, we see a different scenario. Delay is compensated on a small group of franchisee of very few franchisee where we effectively have delay issues or default issues, inside the Company, we have been working to tackle, solve, trying to help the franchisee right around those financial problems and finally have them better manage our cash flow, we also have been working in cases where there is higher leverage, we have been trying to transfer inventory from different stores. In some way the Company has and acting very closely to those partners to minimize the negative impact that is coming from the macroeconomic scenario. And we are comfortable here to say that even though default levels have gone up, it is still at a very low overall levels and we believe that given an improvement that we expect to see this year, I would say that the worst is past in the default levels.

(interpreted) Hi, Fabio. Hi Fred, thank you for taking my question. In the same conference call a year ago, we were discussing the impact of foreign exchange variation and a [possible] refering that you could have to create a substitution process to replace imported products. Trying to look at both internal and external market, trying to create a natural hedging mechanism, to try and stay the financial side, of course throughout 2016 the exchange rate favored the previous model. And so the question is whether that stand with depreciation of the real seen again in 2015 was that less a sight somewhat or if there an initiative being put together in terms of finding a more natural hedging mechanism. Thank you.

(interpreted) Speaking throughout 2016, yes, the Company made a great effort to reduce imports and to bring part of important mix to our local production facility. With that, we managed to substantially reduce imports throughout the year, which of course helps not only in terms of foreign exchange, but also in terms of time of response and collection leftovers because these imported products also have a different longer cycle, which make it more difficult for us to get demand right. So we find it more difficult to meet market demands and everything, then we have higher leftover levels. So yes, we did reduce that cycle with the current foreign exchange rate of course some imported items might make more sense again but in structural columns, we will continue to try and reduce the levels of imports to a point where we understand we have the local ability to provide that, if we are able to replace imports, we tend to do that especially because of the time-to-market issue. The foreign exchange rate at the current levels tend to be more favorable because of the import of raw materials plus not so much for finished products until 2014, 2015, part of 2015, the imported raw material had a higher relevance in our mix, but starting mid-2015 and throughout 2016 that scenario changed, because of the higher foreign exchange rate, we started buying more raw materials internally. Now with the foreign exchange rates back to pre real levels that opens up room for us to import more raw material and try to control the increases of price in raw materials has dealership inside domestically speaking. So that -- so now it tends to be more favorable.

(interpreted)And final quick question. Also last year, we actually about possibly tapping in International market in South America, and the idea would be to mitigate that risk of a short drop in performance, how do you see that? Is that still in the back burner so to speak?

(interpreted) Now in the short run that's not a big priority, even though, we have a team which is working constantly to find opportunities to continue to develop our brand outside of Brazil, especially in South America, we have a very strong robust operations in Paraguay, Uruguay, Bolivia and in those countries, we continue to expand our facilities, but the opportunities to expanding in different geography need to be assessed on a case by case based ahead nothing concludes with that above that's right now.

(interpreted)Good morning. Thank you for taking my question. Keeping in mind the monitoring of stores you perform, we would like to know if you already have any idea of how traffic has been in the first few months of 2017. Have you been able to identify an improvement? Thank you.

(interpreted) Hi Andrew, this is Fred. I will answer not only for the beginning of the year but I will tell you little bit of December, what we saw was that, December has changed the dynamics a little bit in terms of what would be normal -- what would be a normal month of December. A lot of it has to do with the [backlog] which has started moving sales to November, not only to closing items alone that you have, for that backlog which has changed consumption patterns in terms of electronic and other areas and what we have observed is that Christmas has taken longer than usual to start. The slower consumers in December was or have changed and is a lot more concentrated in the last 10 days or the last week then it has seen historically. We have observe that since December there was a significant decrease in flow in the first 15 days of December and after that we witnessed an acceleration actually reaching Christmas. After Christmas, this improved flow was maintained, this was observed all the way into the last week of January. Branded stores had a lot of sales. We believe that consumers bought at Christmas time but also waited or after Christmas sales and check some learning for that period. And therefore, we had an improvement flow during sales. And after the sales ended, this flow slowdown once again in e-commerce. So what we can say for the beginning of the year that we had a strong sales environment throughout the market but a lot of sales going on. With some response from consumers -- consumers responded well to these sales, but what is really important from now on is that last two years we couldn't judge fall collection in the stores, and it's important for us to understand how the stores react in an environment of full price environment. For us this is what actually matters from now on. We now have our fall collection and then we'll have our winter collection and that's when we'll be able to have a better understanding of how consumers are enjoying after we discount this Christmas eve factor and perhaps they had get some money for after Christmas sales. And so, we do not believe that anything that happened in January in terms of flow will have an impact with a trend for the rest of the year. We believe that as of last week, we have a scenario that will probably set the pace for the rest of the year. Thank you very much.

(interpreted)Hello, thank you for taking my question. In fact, I have two questions. The first is a more a follow-up and you have non-recurring impact of -- where the actions taken by Eletrobras in the fourth quarter and I would like to know what the value this reversal represents in terms of what you had already gained during the first nine months of the year. And then my next question is about multi-brand. I would like to have some more details on the segmentation of multi-brand. What you have already done, whether you expect to obtain any results from the strategy?

(interpreted) Hello, thank you for taking my questions. In fact I have two questions. The first is a more of follow-up, you have number carrying impact of with the actions taken by Eletrobras in the fourth quarter and I would like to know what value this reversal represent in terms of what you had already gained during the first nine months of the year and then my next question was about multi-brand, I would like to have some more details on the segmentation of multi-brands, what you have already done and whether you expect to obtain any results from this trend?

(interpreted) So this is Fred. The Eletrobras effect was an effect on the fourth quarter, but in the exercise it was not -- we had acknowledged BRL23 million, which is BRL7.5 million that affect the EBITDA and other operational lines. And another BRL17 million in the financial segment and then the BRL17 million was above in the third quarter and when we combine the fourth and third quarters, we have an impact of BRL7.5 million were from the EBITDA and the others were from the financial outcome and then we have a final outcome that the results was basically between the quarters, but for the year as a whole the result was zero. In terms of multi-brand, we work to the progress in the second semesters 2016 and the main objective was to identify somethings for instance in the multi-brand channel, we have 187 clients and even though we talked about multi-brand as if it were a single channel, in fact we have different segments that are very different within the multi-brand segment and these segments have different needs in terms of project for frequency of purchases and therefore there are significant differences of what really matter for that kind of clients, but the strategy of the Company was not to necessarily segment it, so that it is possible to have a better coverage of each one of these very slow segment. With our target, we were able to identify what is segment growth then we identified some differentials in terms of our models for each one of these segments and if you analyze our materials, which was presented as Hering Day last year, you will have some more details on (inaudible), what changes we are planning to managing, but what I can tell you right now is that segmentation is something that will begin its implementation this year and [slowly] it will take us two to three years so that we can effectively capture the whole potential, the full potential of segmentation. In the multi-brand channel, right now we are still implementing the new model where we need to have all of the segment clearly identified at our database, so that we can generate information for our representative so that they know more about each one of the clients and to what segments they belong. We also have capacity building of the sales team. So that they know what they have to do to better serve each one of these segments and this first quarter, we are still defining, structuring actually this new model of operation and then in the second quarter, we'll capture some values. And in 2018 and 2019, we believe that this is really when we are going to have a better impact with this new strategy. And it will be advancing the performance on the channel. Thank you very much. ?